Gold rose above the key $4,000 per oz level on Thursday (November 6th) as a weaker dollar and a prolonged US government shutdown raised concerns about the economic outlook.

Spot gold prices rose 0.7% to $4,011.79 per oz at 09:14 GMT. US gold futures for December delivery rose 0.7% to $4,021.20 per oz. "The Supreme Court's skepticism about tariffs and a slightly weaker dollar are likely supporting gold prices," said UBS analyst Giovanni Staunovo.

"Although near-term prices are likely to continue consolidating, we expect a further Federal Reserve rate cut to lift gold prices to $4,200/oz by year-end." The dollar weakened 0.2% after hitting a four-month high in the previous session, making gold cheaper for holders of other currencies.

The US Supreme Court justices on Wednesday cast doubt on the legality of President Donald Trump's sweeping tariffs in a case with global economic implications.

Meanwhile, US private companies added 42,000 jobs in October, beating the Reuters estimate of 28,000, according to a Wednesday ADP report. A stronger labor market could dampen expectations of interest rate cuts.

The impasse in Congress has resulted in the longest-ever US government shutdown, forcing investors and the Federal Reserve to rely on private sector indicators. The Fed cut interest rates last week, but Chairman Jerome Powell indicated that it might be the last cut for 2025.

Market participants now see a 63% chance of a Fed rate cut in December, down from more than 90% last week. Non-yielding gold tends to perform well in a low-interest environment. European stocks fell, pressured by losses at France's Legrand, which failed to meet sales growth expectations, adding to recent concerns about the high valuations of technology companies.

Elsewhere, spot silver rose 1.4% to $48.74 an ounce, platinum rose 0.4% to $1,567.01, and palladium rose 1.1% to $1,434.22. (alg)

Source: Reuters